Prime Office (PRIMOF) Q2 2024 earnings summary

Executive summary

• Revenue increased by 2.7% to DKK 101.0 million in H1 2024 compared to H1 2023, driven by higher rental income and internal property sales.

• Operating profit (EBIT) was DKK 58.8 million, impacted by one-time costs related to property sales and legal/advisory fees.

• Net profit before value adjustments and tax was DKK 38.3 million, down from DKK 47.2 million in H1 2023.

• Value adjustments on investment properties contributed DKK 58.4 million, mainly from residential assets.

• Net profit before tax was DKK 96.7 million, compared to DKK 113.3 million in H1 2023.

Financial highlights

• Total assets increased to DKK 4.27 billion, up from DKK 3.89 billion at June 2023, mainly due to land acquisitions in Aarhus.

• Equity rose to DKK 2.07 billion, with an equity ratio of 48.5% (down from 52.2%).

• Loan-to-value (LTV) increased to 44.1% from 41.3% year-over-year.

• Cash position at period end was DKK 108.4 million, down from DKK 293.3 million at year-end, reflecting land purchases.

• EPS for H1 2024 was DKK 14.26, compared to DKK 17.08 in H1 2023.

Outlook and guidance

• Full-year 2024 revenue expected at DKK 195–210 million, operating profit at DKK 95–125 million, and pre-value adjustment profit at DKK 75–100 million.

• Management maintains guidance despite continued macroeconomic and geopolitical uncertainty.